Transcos seek gradual weaning of incentive

Private sector power transmission companies have sought a graded reduction of incentives for moving renewable energy across states, instead of a steep cut.

In a representation to the Centre, the Electric Power Transmission Association (EPTA) urged the government to adopt a more flexible approach to the planned withdrawal of the Inter-State Transmission System (ISTS) waiver.

As part of its suggestions, EPTA proposed a milestone-based eligibility framework that would allow projects showing significant progress, but delayed due to external challenges, to continue benefiting from the ISTS waiver. "These projects should be given a few more months to complete construction so that they come under the ambit of the ISTS waiver," an EPTA statement said.

The association recommended a more gradual phase-out of the waiver, starting with a 10% withdrawal each year instead of the proposed 25%. Such a calibrated approach would significantly ease the impact of the waiver's withdrawal on the cost of green power, EPTA added.